Mauritius Keeps Key Policy Rate at 4.5%

The Central Bank of Mauritius unanimously decided to keep its key repo rate steady at 4.5% for the fourth consecutive meeting on February 11, 2026. The Committee said a cautious, wait-and-see approach remains appropriate, emphasizing the need to anchor medium-term inflation expectations amid ongoing economic uncertainties. The Bank noted that headline inflation rose slightly to 3.8% in January 2026, from 3.7% in December, but is expected to average 3.6% for the year, within the 2–5% target range and very close to the mid-point medium-term target of 3.5%. Meanwhile, domestic economic activity continues to be supported by services, namely tourism and financial services, while pending infrastructure projects are expected to boost construction and investment. Real GDP is projected at 3.3% in 2026, potentially rising to around 3.5% if capital projects accelerate and the African Growth and Opportunity Act is renewed.

The Central Bank of Mauritius unanimously decided to leave its key repo rate steady at 4.5% for the third consecutive time during its November 2025 meeting, citing the need to anchor medium-term inflation expectations against a backdrop of elevated economic uncertainty. The country's annual inflation eased to 4.1% in October from 4.4% in September, remaining within the Bank’s medium-term target range of 2-5%. Headline inflation for 2025 was revised down to 3.7% from 4% previously, on the back of softer commodity prices, easing global inflation, food subsidies, and lower fuel costs. For 2026, inflation is expected to converge toward the midpoint of the Bank’s target range, settling at 3.6%, though upside risks from global factors remain. Meanwhile, the Bank raised its 2025 real GDP growth forecast to 3.1%, up 0.1 percentage point from the August MPC projection, and expects growth of 3% in 2026, while cautioning that risks remain tilted to the downside.

The Central Bank of Mauritius kept its key repo rate steady at 4.5% during its regular meeting on August 13th, 2025, leaving borrowing costs at their highest level since August 2024. Policymakers noted that, given the current global and domestic economic uncertainties, it was prudent to maintain the existing policy stance. While the recent rise in inflation appears temporary, medium-term risks from tariff-driven global inflation could be more persistent. Headline inflation rose for the fourth consecutive month to 3.1% in July 2025, largely reflecting the impact of budgetary measures, which include higher taxes on demerit goods and additional excise duties on vehicles. With one-off effects expected to ease, inflation should stay within the Bank’s 2–5% medium-term target, with headline inflation projected at 4.0% in 2025, up 0.5 percentage points from the prior 3.5% forecast. Domestic GDP growth for 2025 is now expected to settle near 3.0%, down from the earlier 3.0–3.5% forecast.